Prosegur FY Results Madrid, February 28 th, 2011
Highlights Total sales in increased by 17.1% to EUR 2,560 million (2,187). Organic sales growth of 7.1% (3.7%) EBIT Margin stood at 10.3% EBIT rose 13.9% reaching EUR 263 million (231) EPS amounted to EUR 2.6 (2.4) Net Debt at December 31 st was EUR 174 million (234) Net Debt / EBITDA 0.5 times 4 acquisitions made in for a total of EUR 18.6 million Staff increased to over 104,000 people at the end of (103,475) More than 500 new hires in Spain 2
P&L Consolidated Results Var. Turnover 2,560.3 2,187.0 17.1% EBITDA Margin 347.1 13.6% 294.9 13.5% 17.7% Amortization -48.9-43.9 Depreciation of intangibles and other -35.6-20.5 EBIT Margin 262.6 10.3% 230.5 10.5% 13.9% Financial results -31.4-19.8 Profit before taxes Margin 231.2 9.0% 210.7 9.6% 9.7% Taxes -70.8-63.5 Net profit 160.4 147.2 9.0% Minority interests 0.4 0.7 Net consolidated profit Margin 160.8 6.3% 147.9 6.8% 8.7% Number of shares (*mill ) Earnings per share 61.7* 2.6 61.7* 2.4 8.7% 3
Turnover by business line 3,000 + 17.7% 2,416.5 + 17.1% 2,560.3 2,000 2,052.8 2,187.0 Organic 7.1% Inorganic 3.9% Exchange rates 6.1% 1,000 0 134.2 + 7.2% 143.8 Corporate Security Residential Security Total * Includes the FX effect 4
EBIT / Margin by business line EBIT 300 +16.4% 250 240.2 206.3 200 + 13.9% 262.6 230.5 150 100 50-7.4% 24.2 22.4 Margin % 0 20 Corporate Security Residential Security 18.0 Total 15 15.6 10 10.1 9.9 10.5 10.3 5 * Includes the FX effect 0 Corporate Security Residential Security Total 5
Turnover by region 3,000 + 17.1% 2,560.3 2,187.0 2,000 1,260.0 + 3.0% 1,298.2 + 36.1% 1,262.1 1,000 927.0 0 Europe LatAm Total * Includes the FX effect 6
Europe Europe Sales EBIT Margin Var. Var. Corporate Security 1,200.9 1,161.8 3.4% 66.3 78.3-15.3% 5.5% 6.7% Residential Security 97.3 98.2-0.9% 26.2 23.7 10.5% 26.9% 24.1% Total 1,298.2 1,260.0 3.0% 92.5 102.0-9.3% 7.1% 8.1% Organic 2.0% Inorganic 1.0% Exchange rates 0.0% * Includes the FX effect 7
Europe Spain 963.7 +1.2% 975.3 France +18.2% 132.1 156.1 Spain: Organic growth of 1.2%. This slight improvement in sales in Spain in resulted in increased market share France: Organic growth of 8.5%, mainly driven by the opening of new offices. The acquisitions during have contributed to a 9.7% improvement in sales during Portugal +1.3% 155.4 157.4 Romania 8.8 +7.3% 9.4 Portugal: Improved activity in Portugal which translates into an organic sales growth of 1.3% Romania: Organic sales increased 6.6%, coupled with positive impact of the exchange rate of 0.7% 8
LatAm LatAm Sales EBIT Margin Var. Var. Corporate Security 1,215.6 891.0 36.4% 173.9 128.0 35.9% 14.3% 14.4% Residential Security 46.5 36.0 29.2% -3.8 0.5-760% -8.2% 1.4% Total 1,262.1 927.0 36.1% 170.1 128.5 32.4% 13.5% 13.9% Organic 13.9% Inorganic 7.9% Exchange rates 14.3% * Includes the FX effect 9
LatAm Brazil: Organic growth of 7.1% in sales, inorganic growth of 10.8% coupled with positive developments in the exchange rate of 20.6% Brazil +38.5% 605.3 437.0 Argentina Area (including Paraguay and Uruguay): Organic growth of 29.9% in sales, inorganic growth of 2.5%, coupled with positive developments in the exchange rate of 2.6% Chile: Organic growth of 3.3% in sales, inorganic growth of 3.2%, coupled with positive impact in the exchange rate of 16.7% Peru: Organic growth of 9.0% in sales, inorganic growth of 21.8 coupled with positive developments in the exchange rate 16.0% Colombia: Organic growth of 5.7% in sales, coupled with positive impact in the exchange rate of 19.7% Argentina Area +35.0% 283.1 382.3 Chile +23.2% 84.6 104.3 Colombia Peru +46.8% 109.3 74.4 +25.4% 32.4 40.7 Mexico: Organic growth of 17.1% in sales, coupled with positive impact in the exchange rate of 14.6% Mexico 15.5 +31.7% 20.4 10
Composition of financial results Net financial expenses 14.1 14.3 Exchange differences 3.5 5.5 Non recurrent financial expenses 13.8 0.0 Financial Result 31.4 19.8 11
Net profit Consolidated Results Var. Profit before taxes Margin 231.2 9.0% 210.7 9.6% 9.7% Taxes -70.8-63.5 Net profit 160.4 147.2 9.0% Minority interests 0.4 0.7 Net consolidated profit Margin 160.8 6.3% 147.9 6.8% 8.7% Number of shares(*mill ) Earnings per share 61.7* 2.6 61.7* 2.4 8,7% The effective tax rate has increased from 30.2% to 30.6%, due to the different country mix Dividend policy in line with previous years 12
Consolidated cash flow Consolidated cash flow statement 12/31/ Profit/ Loss 231,2 Adjustments to Profit(Loss) 115,9 Profit tax (70,8) Changes in working capital (46,6) Interest payments (14,1) Operating Cash Flow 215,6 Acquisition of property plant and equipment (80,7) Payments for acquisition of subsidiaries (21,0) Dividend payments (53,0) Other flows from financing activities (1,4) Cash flow from investment/ financing (156,1) Total net cash flow 59,5 Initial net debt (12/31/) (233,9) Net (Decrease)/Increase in cash 59,5 Final net debt (12/31/) (174,4) 13
Investments Capex 71.6 80.7 3.3% 3.2% % over sales Continuing the investment policy, searching for operational excellence and continuous innovation Continuing the investment policy, searching for operational excellence and continuous innovation 14
Balance sheet Non Current Assets Tangible fixed assets Goodwill Intangible assets Non current assets financials Other non current assets Current Assets Inventories Customers and other receivables Other current assets Derivative financial instruments Cash equivalents and other financial assets ASSETS Net Equity Share capital Treasury share Accumulated difference and others reserves Non Current Liabilities Bank borrowings Other financial liabilities Derivative financial instruments Other non current liabilities Current Liabilities Bank borrowings Other financial liabilities Derivative financial instruments Trade and other payables Other current liabilities TOTAL NET EQUITY AND LIABILITIES 961.3 360.7 318.7 147.9 33.3 100.7 1,014.9 42.7 672.7 0.5-299.0 1,976.2 666.6 37.0-40.7 670.3 436.5 174.4 14.5 3.1 244.5 873.1 295.7 64.7 0.2 432.2 80.3 1,976.2 898.7 326.0 300.8 158.2 38.1 75.6 703.8 29.9 594.8 0.5-78.6 1,602.5 525.3 37.0-40.2 528.5 426.9 173.2 22.3 1.8 229.6 650.3 137.6 62.3-375.2 75.2 1,602.5 15
Net debt Net Net Financial Debt Company's net debt decreased by EUR 59.5 million. Additionally, a securitization of the portfolio of customers in Spain and Portugal amounting EUR 117 million is out of balance 233.9 174.4 New syndicated loan ( 400 million) is at our disposal since October Average cost of date 2.39% ( : 2.65%) Net Debt / EBITDA Ratio 0.5 times Net Debt / Equity Ratio 0.3 times Strong balance sheet will allow to finance future expansion Strong balance sheet will allow to finance future expansion 16
Acquisitions Genper, S.A. Genper, S.A. Tellex Tellex Telemergencia Telemergencia Peru Peru Martom Martom Acquisition Acquisition date date 28th April 12th August 30th September 1st December Country Country Uruguay Argentina Peru Brazil Activity Activity Electronic Systems Electronic Systems, fire protection Alarms Monitoring (residential) Electronic Systems (in the Bank segment) Employees 27 182-91 Employees Contribution Contribution UYU 41.1M ( 1.5M) ARS 42.7M ( 8.3M) PEN 7.6M ( 2.0M) 7,879 connections BRL 18.4M ( 7.9M) Acquisition Acquisition price price UYU 18.9M (EUR 0.7M) ARS 25.1M (EUR 4.9M) PEN 14.4M (EUR 3.8M) BRL 20.5M (EUR 9.2M) Objective Objective We have strengthen our business of technology in Uruguay We have entered in the ATMs sales and maintenance business We have strengthen our position in the alarms business We have consolidate our position in the electronic security business focused on banks 17
Staff Total staff 103,475 0.9% 104,363 Employment growth Staff increased in the in 888 people 550 new net hires in Spain 18
Conclusions Prosegur has done a good job in, and we will try to follow this line in 2011 Markets continue being tough, especially in Spain The rest of Europe is slowly recovering Latin America is a high-growth market that offers room for further consolidation In 2011, we will continue searching for acquisitions in both current and new markets Expansion to new markets continues as part of our plan All in all, we are confident about the development for 2011 We are working on a new strategic plan for 2012-2014 19
For further information, please contact: Mónica Martin Head of IR +34 91 5895497 accionistas@prosegur.com Q&A